Overpricing properties. Haven't Sellers (and real estate agents) learned that overpricing a property does not get it sold?
If a property is overpriced, it will just sit on the market without any activity. The longer it sits on the market, the staler it gets and the less activity. No activity equals no Buyers. No Buyers equals no sales. So why would anyone in their right mind overprice a property? Because they want to net a certain amount of money. Even cash Buyers will not look at overpriced listings. How do you think they became cash Buyers?
Another reasoning behind priding the property at a higher price is so that it allows room for negotiating. Here again, if it is priced high, there will not be enough activity to get an offer to negotiate. If you have a good real estate agent, they will negotiate the highest possible price for the property without overpricing.
In a Buyers market, overpricing does not work. It simply pushes more traffic to the properties that are priced at market value. More activity equals more Buyers. More Buyers equals an offer, possibly multiple offers, leading to a sale. Isn't this the idea of putting a property on the market?
My other thought is why would an agent list an overpriced property? I thought the idea was for the real estate agents to "sell" a property, not let it sit. I've heard some say that they take a listing, even if it is overpriced, to attract Buyers. Now how are you going to attract Buyers if the listing is overpriced. Overpriced listings have very little traffic. Wouldn't it make better sense to take a listing at market value and attract many Buyers?
Besides, how many agents want to have the reputation of having the most expired listings? Certainly not me! I would rather be known for having the most property sales. Plus, marketing an overpriced property is a waste of everyone's time & money. I don't know about some agents, but my time is valuable and is very limited as are my funds. I cannot afford to waste either.
So, when deciding on a price for a property to sell, think long and hard. Overpricing the property will only help sell your neighbor's property. There are many properties for sale out there. To increase your chances of selling it, price it competitively. This will also help to improve the economy.
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